Martin v. Martin, Martin & Richards, Inc.

The primary question presented is whether a dismissal with prejudice of a suit to declare a contract valid bars an action for a breach occurring after the dismissal. In the circumstances of this case, we answer no, contrary to the court of appeals, 1 and therefore reverse and remand the case to that court for further proceedings.

Gary Martin sold his stock in Martin, Martin & Richards, Inc. to its other two shareholders, Roneal Martin and Floyd Richards. Under their written contract (“the contract”), Gary was to be paid $200,000 for his interest in MMR and $1.3 million for consulting services.…